Fifth Street Finance Earnings Dip Slightly

Fifth Street Finance saw its EPS numbers drop in announcing its earnings report for the quarter ended Sept. 30. Net income of $0.24 per share, or $28.7 million, in Q4, compares with $0.27 per share, or $22.3 million, in the same quarter last year, and $0.26 per share, or $30.4 million, in this year's third quarter.

For the year ended Sept. 30, Fifth Street saw its diluted earnings per common share fall from $0.97 in 2012 to $0.90 in 2013. It was still well above the $0.47 per share reported in 2011, however.

The company also declared dividends of $0.0833 per share, payable at the end of each month from January to May 2014. That's a roughly 13% reduction from the $0.0958 the company declared in its last earnings release.

In September, Fifth Street Finance announced a common stock issuance of 15.5 million shares of its common stock, which had an estimated proceed of $160 million. The net asset value per share of was $9.85 per share, down slightly from the $9.90 reported in June of this year.

"Fifth Street's leading direct origination platform continues to generate assets with attractive risk-adjusted returns, but at lower yields and reduced levels of risk than in the past," said CEO Leonard Tannenbaum. "We have a robust pipeline into calendar-year end and continue to make progress on several initiatives that should lead to improving net investment income over time."


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